Posts Tagged ‘scrappage programs’

Late yesterday the U.S. Senate went along with a slimmed down version of the Cash for Clunkers bill already approved by the House of Representatives last week. The bill offers incentives of $3,500 to $4,500 to car buyers who trade in their vehicles for more fuel-efficient vehicles by this October.

The bill just squeaked through after strong lobbying by the Democratic leadership overcame unified Republican opposition.

Four Republicans — Kit Bond, Missouri, Thad Cochran, Mississippi, Susan Collins, Maine and George Voinovich, Ohio voted with 54 Democrats in favor of the clunker measure. The other two votes needed to block procedural move by the Republicans to kill it came form two independents. Ben Nelson, Democrat, Nebraska, voted against the bill, with 35 Republicans.

Country

Program

Sales % over ’08

GermanyVehicle Scrappage Incentive

€2,500 ($3,250) per car

Car >9yrs old

Car meet Euro-4 emissions

Scrappage program implemented Jan. 12, ’09

Sales growth highest of all major mkts.

Total participation is expected to total 2 million vehicles, representing 60% of total ’08 sales

Estimated cost up to €5 billion ($6.5 billion) up from the initial est. of €1.5 billion

March (+40%)April (+19%)

May (+40%)

ChinaVehicle Scrappage & Tax Reduction Incentive

Up to RMB 5,000 (US$731) for cars with smaller engines

Scrappage incentive implemented March ’09

Sales jump dramatically as a result of the two incentive programs

RMB 5 billion (US$730 million) allocated for scrappage program

Tax reduction implemented January ’09

50% tax reduction on cars with <=1.6 ltr. engine

February (+29%)March (+8%)

April (+25%)

FranceVehicle Scrappage Incentive

€1,000 ($1,300) per car

Car >10yrs old

New car meets emissions std.

Scrappage program implemented Dec. 4, 2008

Boosted sales from negative to positive

An estimated 30-40% of sales are linked to the scrapping incentive

Estimated cost €220 million (US$286 million)

March-May (+4%)

SlovakiaCar Scrappage Incentive

Up to €1,500 ($1,950) per car

Car >10 years old

Price of new car <€25,000

Scrappage program implemented March 9, ’09. through April 14, ’09

Sales moved from a 43% decline in January and a 38% decline in February to an 18% increase in March and 43% increase in April

Estimated cost totals €52 million ($67.6 million)

March (+18%)April (+43%)

Source: Automotive Trade Policy Council

One billion dollars in taxpayer funds were provided. Scrappage vehicles eligible cannot get more than 18 mpg combined EPA rating.